XRP price moved into a correction after falling by over 15% from its highest level this year despite the encouraging Ripple news.
Summary
- XRP price has formed a double-bottom pattern on the four-hour chart.
- Data shows that spot XRP ETFs added over $56 million in assets last week.
- Ripple Labs has received licenses from the UK and Luxembourg.
Ripple (XRP) token dropped to $2.0520, much lower than the year-to-date high of $2.4. Its market capitalization has pulled back to $125 billion.
XRP price has retreated even as data shows that ETF inflows have started to climb. These funds added $56 million in assets last week, a 47% increase from the previous week’s $38 million.
They have added $108 million in assets this week, bringing the total assets to $1.52 billion, which is equivalent to 1.2% of its market cap. This percentage means that XRP ETFs have a long way to go to catch up with Bitcoin (BTC) and Ethereum (ETH) funds, which have 6.5% and 5.4%.
XRP price has retreated despite Ripple making some important announcements this year. The most important one was that Ripple Labs received licenses from the United Kingdom and Luxembourg, a move that will enable it to make deals with more European companies.
The licenses came less than a month after Ripple received a banking charter from the Office of the Comptroller of the Currency in the United States.
Meanwhile, XRP token will likely see more demand in the coming weeks after Evernorth goes public in a SPAC merger. The company has already accumulated millions of XRP tokens, and going public will enable it to get more capital to accumulate the token.
The company plans to generate yield through regulated DeFi strategies, including validator participation on the XRP Ledger
Meanwhile, more investors are moving their XRP tokens to Flare’s FXRP, which has accumulated a DeFi TVL of over $150 million.
XRP price technical analysis
XRP price chart | Source: crypto.news
The four-hour chart shows that the XRP price has retreated from a high of $2.4165 on January 6 to the current $2.05. It has moved below the 50% Fibonacci Retracement level, confirming the bearish outlook.
The token has also dropped below the 50-day and 100-day Exponential Moving Averages and the Supertrend indicator.
On the positive side, it has formed a double-bottom pattern at $2.04 and a neckline at $2.188. This pattern often leads to a bullish reversal.
Therefore, the coin’s outlook is bullish as long as it remains above the double-bottom level at $2.03. A move below that level will point to more downside, potentially to the 78.6% retracement level at $1.9127.